Bears Eye Nifty 50 at 24,000 and Bank Nifty at 58,600 Amid Escalating US-Israel-Iran Tensions

Market Outlook

The Indian stock market is expected to come under increased pressure from bears as the risk-off trade intensifies due to the deepening US-Israel-Iran conflict and surging oil prices. Momentum and technical indicators are consistently signaling a sell.

Nifty 50

• The index fell 1.24% to 24,866 on March 2, with a total of 2,501 shares under pressure compared to 474 advancing shares on the NSE.
• The index took support around the previous swing low of 24,578 on Monday, but is set to open with another big gap on the downside, potentially breaking the major support of 24,570.
• The formation of lower highs and lower lows, along with the index sustaining and closing below the 20-day, 50-day, 100-day, and 200-day EMAs, depicts a clear downtrend.
• Key Resistance: 24,610, 24,900
• Key Support: 24,300, 23,900

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Strategies

• Sell Nifty Futures below/around 24,700 with a stop-loss of 24,800, targeting 24,500 (Aditya Thukral)
• Buy Nifty Futures in a staggered manner between 24,450–24,350 with a stop-loss of 24,000, targeting 25,000 (Jigar S Patel)
• Sell Nifty Futures below 24,700 with a stop-loss above 25,000, targeting 24,500 and 24,200 (Jay Thakkar)

Bank Nifty

• The index plunged 1.14% to 59,840 on March 2, with a total of 474 advancing shares compared to 2,501 shares under pressure on the NSE.
• The daily ADX remains below 20, suggesting a lack of strength in the prevailing move and hinting at range-bound action.
• Key Resistance: 60,000, 60,200
• Key Support: 58,700, 58,500

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Strategies

• Buy Bank Nifty Futures in a staggered manner between 59,300–59,000 with a stop-loss of 58,500, targeting 60,200 (Jigar S Patel)
• Global selling is spreading to the Indian banking index, where prices were seen closing below the 20-day and 50-day EMAs, with both EMAs now sloping downwards, which is negative for the short term (Aditya Thukral)